S.138, NI Act, 1881 and the Role of Magistrate

 S.138, NI Act, 1881 and the Role of Magistrate

Section 138 of Negotiable Instruments Act, 1881 is an important provision.

Hon'ble Bombay High Court has passed an important Judgment on 7 December 2010. 

In context of Section 138 of said Act, in Rajesh Bhalchandra Chalke v State of Maharashtra [2010] GCtR 2940 (Bombay), it was explained thus : -

"After addition of section 145 NI Act in the statute book, it is open to the Magistrate to issue process on the basis of the contents of the complaint, the documents in support thereof and the affidavit submitted by the complainant in support of the complaint. Once the complainant files an affidavit in support of the complaint before issuance of the process under Section 200 CrPC, it is thereafter open to the Magistrate, if he thinks it fit, to call upon the complainant to remain present and to examine him as to the facts contained in the affidavit submitted by the complainant in support of his complaint. But then it is a matter of discretion and the Magistrate is not bound to call upon the complainant to remain present before the Court and to examine him upon oath for taking decision whether or not to issue process on the complaint under Section 138 of NI Act." 

Kindly note that full text Judgments of Hon'ble Bombay High Court can be downloaded absolutely free of cost (without any charges except internet data) from the official website at the link 

https://bombayhighcourt.nic.in/index.php

Then entering the date of Judgment.

Written by 

Vishal

Delhi

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